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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: Fred Fahmy who wrote (12690)	11/8/1998 10:13:00 PM
From: Brian Lempel	Read Replies (2) \| Respond to of 13925

Maybe our Mr. Sim, being the biggest shareholder, wants some extra cash on hand! Who the hell knows. Of course, we don't need them investing in any more TDDDFs! My S'pore quotes are down tonight. This really sucks. <edit> got the quotes....no response in Singapore. Typical "we'll wait to see what NASDAQ does" reponse. Brian

To: Fred Fahmy who wrote (12690)	11/8/1998 10:49:00 PM
From: Rutgers	Respond to of 13925

Dividends Can Prove to be a Value-Added Strategy........ Fred, you've quite accurately explained the negative side to a dividend plan, i.e., something akin to a message being sent by management which boils down to their failure to grow the business fast enough to justify holding the cash; however, dividends do offer at least two (2) key positives. First, shareholders who get the equivalent of a steady 3 to 5 percent (hypothetically) each year off their investment just from four quarterly dividend payments don't cash out as readily if the company falls a wee bit short of double-digit growth. Remember our old mutual fund friend, Jeff Vinick? He was the one who allegedly dumped a cool 600,000 share block after the bell one day last year - maybe he would not have acted so quickly if a dividend plan was in place. Second, the quarterly payments also attract older investors who, into retirement, like the low P/E and Price/Sales numbers that Creative offers, but need to generate regular income from their savings. Also, remember that Mgt has stated that they plan to fund the dividend from both the current cash position as well as from the cash flow as well. Fred, you concluded with Oh well, let's see how this plays out. The full impact of this announcement, imo, may not "play out" for at least six (6) to nine (9) months at a minimum. Indeed, I think the biggest positive from this highly unexpected announcement is that they must be pretty damn confident regarding sales for the next six (6) months and going forward. Bring on COMDEX!

To: Fred Fahmy who wrote (12690)	11/9/1998 2:02:00 AM
From: greenspirit	Respond to of 13925

Fred, I agree and do believe this is a short term gap measure in order to boost up the stock. A poor decision to me, but I suppose the leadership must be under tremendous pressure of late. The next question, since we disagree with this decision, is what should they do with the money instead? I would like to see them invest in more direct sales promotions via the web and their web site. I would also like to see more banners displayed and alliances made to promote their products. Or how about they develop an inexpensive all in one multimedia package to sell to major OEM's. We know they have great sound boards, they also have decent speaker systems, why not sell a package and title it, BlasterSystem or something. Then they could pay for OEM's to advertise it with their computers. Other than that, without being inside the company it's difficult to know whether the money could be used in more effective ways. Michael